Thursday, June 13, 2013

SPX 1-Hour Chart 200 EMA Cross Downward-Sloping Channel

One of Keystone's market turn signals is the 200 EMA cross on the 60-minute (reference the Short-Term Market Signals page on this site), now at 1629.27, and price is under the 200 signaling bearish markets for the hours and days ahead.  Lower lows and lower highs (blue dots) are printing creating a downward-sloping channel. Bad things happen to markets when the SPX drops under the 200 EMA. The bulls will regain control above the 200 EMA. The green falling wedge shows price at the apex so a dead-cat bounce may be on tap, perhaps to the 1615 resistance, but weakness should reappear. The RSI and money flow are not yet in oversold territory opening the door for lower prices. The lower rail of the blue channel forms a confluence, along with the green trend line, at the important 1597-1600 support guantlet. This level may act as a magnet for price. The most important thing on this chart is the 200 EMA at 1629 since bears continue to win as long as the SPX stays under 1629. Bulls will throw a party if they regain 1629. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

Note Added 7:37 AM on 6/13/13:  The bulls sent markets higher on the weaker yen (higher dollar/yen) during the Thursday session as well as a bull-favorable WSJ article released in the afternoon. The SPX moves above the 200 EMA at 1629 placing the bulls in charge for the hours ahead. Bears got nothing until they push the SPX back under the 200 EMA.

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